Consistent inequalities reported within disability pay

A recent survey carried out by the Office for National Statistics (“ONS”) has discovered that in 2023, a distinct pay gap remained prevalent for disabled employees and workers. The ONS report reveals that non-disabled individuals, on average, earned £2 an hour more than their disabled comparators.

Similarly to the definition of disability under the Equality Act 2010 and associated guidance, the ONS determined whether someone has a disability if “they have a physical or mental health condition or illness that reduces their ability to carry out day-to-day activities that has lasted, or is expected to last, 12 months or more.”

According to the report, the pay discrepancy between disabled individuals and non-disabled individuals was calculated at 12.7% with an average earning of £13.69 by disabled workers, compared to £15.69 by non-disabled workers.

There was a more significant inconsistency relating to other protected characteristics as the pay gap was bigger within men than women. The pay discrepancy was also more significant for full-time workers when compared to part-time workers and those individuals with more limiting disabilities, in terms of their day-to-day abilities, experienced a wider pay gap.

Individuals with autism experienced a pay discrepancy of 27.9%, whilst those with epilepsy suffered a pay gap of 26.9% and severe or specific learning difficulties were paid on average 20.3% less than a non-disabled employee.

It has been suggested that following consultation of the Employment Rights Bill 2024, there will soon be a requirement for employers with more than 250 employees to produce a report on their disability and ethnicity pay gap. This recent ONS survey suggests that some employers have not addressed the pay gaps within their organisation and may now be encouraged to review this, particularly in light of the new reporting obligation due to come in force in the coming months.

This report also acts as an important reminder for employers to act in accordance with their obligation under the Equality Act 2010 to implement reasonable adjustments if and when required to ensure any employees with disabilities are not put at a disadvantage.

If you would like any assistance with determining what reasonable steps may be applicable within your workplace, or undertaking an organisation-wide pay review, Rollits Employment team would be happy to assist.